CapsuleZ doesn't look right / physical character modelling

[snake5]

As you can see in the attached image, it clearly intersects my triangle mesh. I'm scaling the physics world but since everything else is rendered correctly, debug drawing class is good.
So first my question is, why? What's wrong there? I'll try to find something myself in the source but if anyone knows the bug (or not), let me know.
By the way, it also penetrates the floor (hard to see but visible in that image too).

My second question is... any good starting points for a character? I've tried setting the velocity (which results in odd collision behavior) and applying impulses (extremely hard to control). So I seem to be stuck here. I have a few more ideas but I'd like to hear yours as I really want to get this up and running ASAP.

[snake5]

I've re-read the docs, again. I thought it could be the collision margin (it's probably so big because of the scaling values).
But when I disabled it, the capsule got bigger and was still penetrating all surfaces.

P.S. How are the margins helping with physics exactly? I have this itch of making them equal to zero...